Similar ambiguities as with the term “Portfolio Management” can be observed with the term “Project Portfolio Management.” Software vendors eager to ride trend waves do their best to amplify this confusion. Market participants don’t hesitate to label their solutions “Project & Portfolio Management” (PPM).
Gartner’s latest study uses PPM to categorize Project & Portfolio Management, bundling two disciplines: PPM (Project Portfolio Management) and PM (Project Management). This causes simple project management tools with minimal portfolio functionality to suddenly be labeled as PPM.
Project Portfolio Management, however, is clearly defined: it is the centralized management of one or more portfolios, encompassing the identification, prioritization, approval, management, and control of projects and programs to achieve specific strategic business objectives.
Conclusion: Project Portfolio Management deserves a precise definition. Conflating it with general project management tools dilutes its strategic value and misleads organizations seeking true portfolio governance capabilities.
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